BETHEL — The town aims to reduce its debt and pay cash for more capital projects in next year’s budget.

The Board of Finance has recommended increasing next year’s budget by about $2.3 million, or 3.2 percent, largely to pay for projects through the operating budget instead of raising the money through bond issues.

Residents will discuss the $75.2 million budget proposal at a public hearing at 7 p.m. Tuesday at the high school auditorium.

Board Chairman Bob Manfreda said the town should avoid issuing bonds because it only postpones the day of reckoning.

“If we can’t afford it today, we’re not going to be able to afford it tomorrow — with interest on top,” he said at a recent meeting.

The proposal includes $30.2 million for the town, $45.1 million for the schools, $3.9 million for debt service and $500,000 for school maintenance.

The operating portion of budget increases spending for the police, health and parks and recreation departments, as well as the highway department for road paving. The board also recommended a $1.4 million capital budget, rather than the $2.1 million plan the selectmen originally proposed.

The capital budget now includes $660,000 to replace a fire engine and $350,000 for the high school HVAC system. But the board recommended that other projects, such as $50,000 for stage lighting for the middle school and $65,000 for improvements to the dog pound, be paid through the operating fund.

The town has historically issued bonds for such projects, but Manfreda said paying cash for them is more fiscally responsible.

“We have a rising interest rate environment,” he said. “We have good economic times. This is the time to put the amount in the budget. It is more transparent and it will save the town interest expense.”

Board members agreed in concept, but worried that residents will not stomach such a large percentage budget increase.

“The only way I could make this justifiable is to decrease expenses in other [operating] accounts,” said member Cynthia McCorkindale, who voted against the revised proposal.

But First Selectman Matt Knickerbocker said taxes would increase by less than 1 percent because of the growth in the property tax base.

“We have a golden opportunity to change the way of doing business for the future of the town, to make it financially stronger in the future with virtually no impact on the tax rate,” he said. “This is the kind of thing the state of Connecticut should have done decades ago. This is the most fiscally responsible thing the town could do.”

But member Bryan Terzian, who also voted against the proposal, said the town should ease into this idea.

“History has shown us when we present a budget that’s too big, it will go down four or five times, because once it goes down it just becomes a feeding frenzy,” he said at the meeting. “I’m not opposed to changing the way we do things. I’m just opposed to changing it all at once.”